Non-deductible IRA
If you contribute to non-deductible IRA and later distirbute it prior to due date of tax return, do you have to complete Form 8606?
If you contribute to non-deductible IRA and later distirbute it prior to due date of tax return, do you have to complete Form 8606?
Permalink Submitted by Alan - IRA critic on Wed, 2018-10-24 18:32
If the distribution is a return of a specific year’s contribution (current or prior year’s) with allocated earnings, you would not report the contribution or the distribution on Form 8606. The 1099R issued for the return would be coded 8 or P. For such a return, the taxable amount would only be the earnings on that contribution and that figure would be reported in Box 2a of the 1099R.